NOTE F
|
GOODWILL AND INTANGIBLE ASSETS |
The changes in the carrying amount of goodwill for the fiscal years ended October 27, 2013, and October 28, 2012, are presented in the table below. The additions during the fiscal year ended October 27, 2013 are entirely due to the acquisition of the United States based SKIPPY® peanut butter business on January 31, 2013.
|
(in thousands) |
|
Grocery |
|
Refrigerated |
|
JOTS |
|
Specialty |
|
International |
|
Total |
|
|
Balance as of October 30, 2011 |
|
$ 123,316 |
|
$ 96,652 |
|
$ 203,214 |
|
$ 207,028 |
|
$ 674 |
|
$ 630,884 |
|
|
Goodwill acquired |
|
– |
|
(9 |
) |
– |
|
– |
|
– |
|
(9 |
) |
|
Balance as of October 28, 2012 |
|
$ 123,316 |
|
$ 96,643 |
|
$ 203,214 |
|
$ 207,028 |
|
$ 674 |
|
$ 630,875 |
|
|
Goodwill acquired |
|
199,626 |
|
– |
|
– |
|
– |
|
103,971 |
|
303,597 |
|
|
Balance as of October 27, 2013 |
|
$ 322,942 |
|
$ 96,643 |
|
$ 203,214 |
|
$ 207,028 |
|
$ 104,645 |
|
$ 934,472 |
|
The gross carrying amount and accumulated amortization for definite-lived intangible assets are presented in the table below. Customer relationships of $25.1 million were acquired during the second quarter of fiscal 2013 related to the United States based SKIPPY® peanut butter business.
|
|
October 27, 2013 |
October 28, 2012 | ||||
|
(in thousands) |
Gross |
Accumulated |
Weighted- |
Gross |
Accumulated |
Weighted- |
|
Customer lists/relationships |
$43,340 |
$(14,719) |
11.0 |
$22,148 |
$(14,684) |
10.9 |
|
Formulas & recipes |
17,854 |
(13,824) |
8.8 |
17,854 |
(11,686) |
8.8 |
|
Proprietary software & technology |
14,820 |
(12,024) |
10.2 |
22,000 |
(17,319) |
9.3 |
|
Other intangibles |
9,386 |
(7,999) |
7.7 |
13,586 |
(10,686) |
7.9 |
|
Total |
$85,400 |
$(48,566) |
10.1 |
$75,588 |
$(54,375) |
9.4 |
Amortization expense for the fiscal years ended October 27, 2013, October 28, 2012, and October 30, 2011, was $9.5 million, $9.0 million, and $9.5 million, respectively.
Estimated annual amortization expense (in thousands) for the five fiscal years after October 27, 2013, is as follows:
|
2014 |
$8,654 |
|
2015 |
5,474 |
|
2016 |
3,349 |
|
2017 |
2,918 |
|
2018 |
2,676 |
The carrying amounts for indefinite-lived intangible assets are as follows. The increase in fiscal 2013 represents the fair value of the trade name and trademarks acquired with the United States based SKIPPY® peanut butter business.
|
(in thousands) |
October 27, |
October 28, |
|
Brand/tradename/trademarks |
$ 333,275 |
$ 93,875 |
|
Other intangibles |
7,984 |
7,984 |
|
Total |
$ 341,259 |
$101,859 |
During the fourth quarter of fiscal years 2013 and 2012, the Company completed the required annual impairment tests of indefinite-lived intangible assets and goodwill, with no impairment indicated. Useful lives of intangible assets were also reviewed during this process, with no changes identified.